Mentor, Ohio-based STERIS plc (STE) provides infection prevention products and services. Valued at $21 billion by market cap, the company offers sterilizers, washers, surgical tables, lights and equipment management systems, and endoscopy accessories.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and STE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the medical devices industry. STE is a market leader in infection prevention, offering a unique mix of consumables and capital equipment. Its diverse portfolio makes it a one-stop solution for healthcare providers, driving revenue and customer retention.
Despite its notable strength, STE slipped 20.4% from its 52-week high of $269.44, achieved on Jan. 16. Over the past three months, STE stock has declined 14.8%, underperforming the Nasdaq Composite’s ($NASX) 4.7% losses during the same time frame.
Shares of STE fell 14.1% on a six-month basis and dipped 3.5% over the past 52 weeks, underperforming NASX’s six-month marginal losses and 27.8% returns over the last year.
To confirm the bearish trend, STE has been trading below its 200-day moving average since early March. The stock has been trading below its 50-day moving average since early February.
On Feb. 4, STE shares closed up by 1% after reporting its Q3 results. Its revenue was $1.50 billion, surpassing analyst estimates of $1.48 billion. The company’s adjusted EPS of $2.53 met Wall Street forecasts.
STE’s rival, Stryker Corporation (SYK) has lagged behind the stock, plummeting 7.4% over the past 52 weeks, but outpaced the stock with 12.2% losses on a six-month basis.
Wall Street analysts are reasonably bullish on STE’s prospects. The stock has a consensus “Moderate Buy” rating from the nine analysts covering it, and the mean price target of $288.43 suggests a 34.4% potential upside from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
